Autumn Budget 2018 – Income tax allowance and bands

For the tax year 2018/2019 the personal allowance for an individual is £11,850 and the basic rate tax limit is £34,500. The additional higher rate is 45% on income over £150,000 and the saving rate is £5,000.

For the tax year 2019/2020 the personal allowance for an individual will be £12,500 and the basic rate tax limit at £37,500. The additional higher rate of 45% will continue to apply on income over £150,000.  The saving rate will remain at £5,000.

This measure will reduce Income Tax for 30.6 million Income Tax payers in 2019 to 2020.  It is intended to encourage more individuals to enter into employment and increase their real household disposal incomes.